Setting: dining table after breakfast. There are only 2 members in my family at this time (my mother is in Japan). I am trying to execute an order. My father and I end up in an argument as follows: I placed a call to Wedbush, Noble, Cooke, Inc., members New York Stock Exchange:
1 Me: Could you give me a quote on Inexco Oil?
2 Father: And what is the May 20 call option?
3 Me: O.K. I'd like to sell 2 calls --- I need permission from my father.
(In transferring my inheritance into my name, I was forced to sign an
agreement in which I agreed not to trade any options whatsoever. In order
for me to buy or sell options, hence, I must receive special written
permission from my father).
4 To my father: I want to sell Inexco Oil May 25s --- 2 calls.
5 Father: What's the strike?
6 Me: 25
7 Father: What's the stock now?
8 Me: 23 7/8
9 Father: Why do you need to sell?
10 Me: Why? It only has 9 days left (before expiration)
11 To phone: O.K. I'll call back later.
I hang up.
12 Father: What's the purpose for this?
13 Me: You get a hundred dollars for this.
(I would rather not get into a complicated discussion of covered option writing.
However, basically]y, by selling these calls, I can get $100 income, but must sell
the stocks at 25 if the stock ends up above 25 within 9 days. Please forgive
stock market Jargon).
14 Father: You get a hundred dollars, but you're losing whatever chance you
have of --- this thing's been going up like mad.
15 Me: Logically, you don't do this --- you sell the options.
(My father does not understand the intricacies of covered option writing. Logically,
any expert would sell these options against the stock. My father refers to "but you give away any chance..."; he means that if the stock goes up above 25, I cannot participate in the profit -- I have to sell at exactly 25 because of the option contract).
16 Me: It can go down, just as easily, right down to 20.
17. Me: It's a hundred free dollars.
18 Father: It's nothing for the investment you got in the stock.
19. Me: You got $5000 in this; you're gambling for just a hundred.
20. Father: If you're going to go into a call option, don't gamble so much money.
21. Me: It's a covered call position. It's a hundred free dollars.
22. Me: Why don't you want the hundred dollars?
23. Father: You're preempting --- you could have $500 on that thing ---
24. Me: No you can't. Stocks don't move that fast.
25. Father: All you're doing is gambling here.
26. Me: No! You're gambling by not selling them here. By selling it, you're hedged.
27. Father: You're making no substantial hedge.
28. Me: You're making a hundred dollars no matter what happens.
29. Father: No.
30-35 Me: It is true. You make a hundred dollars for selling. Now if the stock goes to 25, you make another $225. If the stock continues to go higher, it might not even be called, unless it goes above 25 1/4. And if it does, you're still ahead. It has to go to 26 before you break even both ways. If it goes to 27 in 9 days, today is one of them, and it's still 23 7/8. (Pause) What's wrong with taking a hundred dollars?
36. Father: It's the principle of the thing.... of gambling.
37. Me: That's right. That's why you have to sell it.
38. Me: I have to sell the stock anyway to write the Loews options. Might as well sell the stock at 25.
40. Father: You're going to sell it anyway!?!
A. ANALYSIS OF TOPIC
(i) There was only one topic discussed: Should we or should we not sell 2 calls of Inexco Oil, May 25 call options? Subcategories include
(a) what happens if stock goes above 25;
(b) what happens if stock remains below 25;
(c) it's a hundred free dollars no matter what;
(d) Experts and logic do this.
(ii) Here is a general schematic of the "circle of argument" encountered:
Me: Let's sell them.
Father: Why?
Me: It's a hundred free dollars.
Father: But you're preempting the chance of a large gain.
Me: But the experts do it.
Father: You're just gambling with options.
Me: No. You're gambling by not selling them. You're hedging by selling them.
Father: You're making no substantial hedge.
Me: YOU GET $100 FREE.
Father: YOU'RE GAMBLING.
Me: YOU GET $100 FREE.
Father: YOU'RE GAMBLING.
Me: I need to sell INX common at 25 anyway to sell the Loews options.
Father: O.K. I'll go along then.
(iii) CONTEXT OF LIFE:
Please keep in mind the following: My father has a closed mind about "options." Although most option strategies are highly conservative, the outright purchase of options is about the most speculative thing there is. Hence, to my father, option = gambling. Also, to me, money = logic.
(iv) The only mutual ground seems to be the Loews options. Whenever presenting arguments about something else, my father and I can not see eye to eye. But when it comes to writing the Loews options, we both see the need and the benefits.
B. THE ANALYSIS OF ARGUMENT
(i) The actual record of the argument, abridged and compressed:
Move 1: Let's sell 2 calls INX. (me) l
Move 2: What for? (father) 9
Move 3: $100 (me) 13
Move 4: You preempt potential (father). 14
Move 5: But it's logical and experts do it (me) 15
Move 6: $100 is nothing compared to $5000 --- what the stock is worth (father) 19
Move 7: It's a covered call (me) 21
Move 8: You're gambling with options (father) 25
Move 9: You're gambling by not selling. This is a sound hedge (me) 26 Move 10: This is no hedge (father) 27
Move 11: Need money for Loews options (me) 38
Move 12: O.K.
(repeated steps and circular arguments omitted).
(ii) lines have been correlated as per directions.
(iii) ARGUMENT TYPE 1:
Q: You're gambling.- A: $100-Q: You're gambling -A: $100 -Q: You're gambling. etc.
No other fragmentary argument types. There is, of course, the text of the entire argument.
C. THE ANALYSIS OF SEQUENCE
(i) adjacency-pairs (in the above compressed text) are: Move 2 to Move 3 (of course, the whole text of argument strings together, but only move 3 is an answer to a question).
(ii) Most of the strings in the argument are high probability strings, i.e. the next response is highly probable and sometimes required. However, in some instances, skips are possible.
D. THE ANALYSIS OF RELATIONSHIP
(i) there were no constant interrupters, quiet persons, question askers, or background noisemakers; there are only 2 people in this situation. Hence,
(ii) there were no pair types either (except for me/father, which was "argumentative")
(iii) Role expectations and transactional analysis (TA) played an important part. My father was expected to play the role of the parent, and me the child; yet, it was more a case of "whoever spoke first was the parent, whoever spoke last was the child" type of transactional analysis. There was little adult to adult talk, which is perhaps why the argument lasted so long.
(iv) Money is an important part of my plans for happiness. My formula for happiness is love, sex, respect, companionship/recreation, food, clothing, shelter, and health. (The first four come from a girl/goddess); money provides food, clothing, shelter, part of health, and helps support the girl/goddess. Hence, the significance of this argument in my life and future plans is money.
E. ANALYSIS OF THE SETTING
(i) there was very little static disturbances; food was not being consumed during the
entirety of this argument.
(ii) There was very little change in energy level throughout the argument; perhaps we were both a little sleepy at the start, more awake during the middle, and more calm and collected toward the end.
(iii) The only such "disinterest" was present in the closed-mindedness of my father. I said: $100! It would not absorb into his head, and he kept on replying, "you're just gambling." (Incidentally, covered option writing is far from gambling]; in fact, it greatly reduces the risk of simply holding a stock on the buy side).
(iv) The only thing that I notice about my father (other than closed-mindedness) is his insistence for power and control; even though I know everything that's going on, he insists on having a large say in the decision, and gives me trouble whenever I try to go ahead with something without his consultation and advice.
(v) discourse in oral talk is different from writing, primarily in
(a) degree of formality,
(b) logical conciseness. Writing is more formal and concise than speech.
A #3: MY DAILY ROUND SETTING
A. LOGGING ACTIVITIES IN SETTING
(i) 10 p.m. last night to 10 a.m. today
(ii) Sleeping: 12 hours
(i) 10:00 a.m. (ii) 15 min. (iii) my home (iv) me (v) waking up (vi) bathroom, etc.
(i) 10:15 (ii) 3 hours (iii) my home (iv) me (v) watching TV (vi) enjoy life
(i) 1:15 (ii) 5 hours (iii) bed (iv) me (v) nap (vi) must be sick; can't stay awake; maybe deliberately trying to make my daily round easier to finish by killing time.
(i) 6:00 p.m. (ii) 15 min. (iii) my home (iv) me (v) waking up (vi) bathroom, etc.
(i) 6:15 p.m. (ii) 1 hour (iii) my room (iv) me (v) listening to records (vi) trying to find something to do before school tomorrow.
(i) 7:15 p.m. (ii) 30 minutes (iii) eat dinner (iv) me, father, mother (v) very hungry, must eat a lot, (vi) time to eat
(i) 8:00 p.m. (ii) 2 hours (iii) my room (iv) me (v) studying some books for some of my courses at the U.H. (vi) must study for classes tomorrow (Monday).
(i)10:00 p.m. (ii) 2 hours (iii) TV room (iv) me, mother (v) watch TV (vi) do something before I sleep.
(i) 12 midnight (ii) 15 minutes (iii) my room (iv) me (v) prepare for bed (vi) felt guilty, I picked an easy day to do my daily round, time to sleep
(i) 12:15 (ii) until] 8 next morning (iii) my bed (iv) me (v) sleeping
B. MICRODESCRIPTIONS OF SENSORY OBSERVATIONS
(i) Aches and Pains:
"I have been in bed for over ten hours and have just woken up. I feel tremendous aches and pains and am reluctant to begin the day. When I move around, my back and abdomen ache. The pain in the back is not too intense, but gets more painful as I move around more and more." Note that this entry shows how inactivity can lead to aches and pains.
(ii) Stretchings and Exercises:
"After getting up after a long sleep, I yawn, stretch, vibrate away any pain and aching due to inactivity. It feels good after I feel the pain fading away. But I can feel the withdrawal symptoms of beginning another day." Note how this entry illustrates the effectiveness of streching and exercise to cure aching due to inactivity.
(iii) Blushing
"I am walking out of a class, I pass by a girl whom I think is very pretty; I have been staring at her for several days now; she knows this; I am embarrassed as I have not come close to her for several weeks; I try to remain calm and act undisturbed by her presence." Note that this entry illustrates a common human reaction of a member of one sex when near a member of the opposite sex whom the first member is interested in or thinks attractive.
(iv) Retinal Sensations and Etc.
"I am walking across the U.H. campus when I see a very, very cute chick with an extremely sexy body. My heart beats faster. She's wearing a ring. Why are all the pretty girls taken? Beautiful! Something to work toward getting one day!" Note how this entry illustrates the abundance of pretty girls on the U.H. campus.
(v) Appetite
"I come home from school. I must lose weight but my will power is fading. I have to eat something. I'm hungry. I go into the kitchen and find some cold leftover turkey. My mouth waters. I eat. I still want more." Note how this excerpt illustrates the obese individuals neurotic desire to eat and eat forever, and how even self-control and intellect cannot conquer this neurosis at all times.
(vi) Energy Level
" Only one hour until my Anth. 200 test. I procrastinated all night and did nothing, but stayed awake for the entire night! I am tremendously tired. My energy level is zero. I want to fall asleep, but I can't. I have to stick it out." Note how this excerpt illustrates how procrastination leads to a decline in one's energy level and creates the necessity of a last minute blitz.
(vii) Smells and Odors
"I am walking into the bathroom and I can smell the terrible odor. I can't stand it. I am embarrassed to describe it." Note how this excerpt illustrates the common human problem of defecation, and how both civilized and uncivilized people must deal with it.
C. INVENTORIES OF OWNERSHIP
(i) Subscriptions (a) Periodicals, etc.
"I am searching my room to see what items fit this category. The list includes the following: Wall Street Journal, Barron's, Value Line Convertible Survey, Value] Line OTC Special Situations Survey, EVM ANALYSTS, Holt Investment Survey, Weight Watchers Magazine, Executive Health Magazine, OTC Special Situations, OTC Securities Review, OTC NEWSLETTER, and Growth Stock Outlook." This excerpt illustrates the type of person I am; a stock market maniac with some concern over health.
(b) Membership dues, etc.
"I am searching and can't find anything for this category; perhaps my membership in the Punahou Alumni association dues would go in this category." --
c) contributions
"I am searching for something for this category; I can't seem to find anything. Perhaps my contribution to Punahou school would be about it."
(ii) Documents and Mementos
(a) Official, legal, medical
"Official documents and mementos I have are my Punahou math award, speech award, music award, and German award."
(b) Personal-biographical (Prizes, letters, gifts, albums, souvenirs, etc.)
"A photo album and my school year books."
(iii) Personal Effects: Selected Inventories (a) Purse/Wallet
"I own no purse or wallet."
(b) Car Glove Compartment
"My car glove compartment has a map of Hawaii (street map), as well as some Kleenex and some sunglasses."
(c) Your own Drawer for Stuff
"My drawer contains stock transactions, Bank of Hawaii checks, note cards, pencils, rulers, postage stamps, my calculator, my orthodontic bands, and some cassette tapes."
(d) Clothes Closet
"My clothes closet includes clothes, football and baseball equipment, records, and insect killer (which hangs)" Note that these above entries demonstrate that I am a simple-minded person who hates junk; I have very little that is not organized and very little that I don't use or need.
A #4: MY STANDARDIZED IMAGININGS
A. INTERIOR DIALOGUE
(i) Overlays of Comments to Self
"I am sitting at my desk trying to determine how I am going to come up with the $9,650 I need to write 20 call options of LTR. I can't decide whether to sell my favorite stock - Inexco Oil - and my Levi Straus calls, or whether I should wait a month before I get my $4000 from the sale of my musical instrument. In disgust and indecision, I am saying to myself things like, "I don't want to sell INX, but I've got to if I'm going to get my income from LTR." Note how the above excerpt reflects the turmoil present in financial decisions.
(ii) Value Expressions
"I have been told that virtually everyone at this college is not a virgin. I feel insecure and curious, since I am a virgin. I go around asking people if they are virgins, and what percentage of the students at the U.H. are still virgins. They all tell me that more than half are not virgins. I wonder if I came to the right college =fornication is bad it reduces the intensity of love after marriage if one has sex with someone besides his or her spouse." Note how the above excerpt relates today's difficult role conflicts for young adolescents; one value judgment being that of whether virginity should be preserved until marriage.
(iii) Preparing Schedules
"I am preparing my weight reduction schedule, to lose one pound per day. I list my maximum weight per given day, the date, the goal, the actual weight, days remaining before an important event, and pounds to lose before I am normal." Note that when preparing schedules, one has a tendency to overextend oneself. It is virtually impossible to lose a pound a day without fasting.
(iv) Reviewing/Making Plans and Lists
|
Daily Round Archives |
Start of Document C, Pgs, 1-11. |
Continuation of Document C, Pgs, 12-20. |
Start of Document D, Pgs, 1-10. |
Continuation of Document D, Pgs, 11-21. |
End of Document D, Pgs, 22-36. |
Document E, Pgs, 1-19. |
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